In the long run, a perfectly competitive firm that is maximizing profit will?

Question

In the long run, a perfectly competitive firm that is maximizing profit will?

Answer 1

stay in business.  perfectly competitive firms dont make any economic profit if they are in equilibrium.  if there is economic profit, more firms will enter the industry, and if there is economic loss, firms will exit the industry.  an outcome of a perfect competition is allocative efficiency, which means that you cant increase someones welfare without taking away someone elses welfare.  price=marginal cost=marginal revenue.

Answer 2

Assumption of Perfect competition, Firms make only normal profit in the long run.

If they do make temporarily profits in the Long run, then more firms will enter the market, as it seems to be more profitable to them. So in the end all firms earn zero profits, where price equals marginal cost ( P=MC)